Gold prices declined moderately

Gold moderately cheaper today, reaching an eight-week low, and headed to his fourth consecutive weekly fall. The cause of this trend is the strengthening of the US dollar and growing speculation that the Fed will raise interest rates in June.

It is worth emphasizing, lower prices for the precious metal is fixed for the seventh session in a row, which is the longest series in more than six months. Gold is beginning to become cheaper after the minutes of the last Fed meeting, released last week, indicated that the FOMC members do not rule out raising interest rates at its next meeting in June. Recall, higher interest rates have a downward pressure on the price of gold, which brings its holders to interest income and that is difficult to compete with the assets, bringing that income against the background of increasing interest rates.

"Expectations for improving the Fed in June changed over the past couple of weeks, and taking into account the strengthening of the US dollar and rising stocks, the fall in gold prices looks reasonable. Another reason for the reduction of the precious metal is the current positioning. The data from the CFTC, published last week, showed that net long positions accounted for about 98 percent from a record high, "- said an analyst at UBS Joni Tevez.

Meanwhile, yesterday the Fed Jerome Powell said that the rise in interest rates in the US could happen "pretty soon". However, he warned that it will depend on the state of the economy, including the labor market situation. "There are good reasons to believe that the underlying growth rate of higher" than one might think, based on the latest reports on consumer spending - Powell said. - Labor market data generally give the best signal in real time on the latent pace of economic activity "He stressed that, according to these data, the US economy is now." On a solid basis. "

Attention also focused on the market scheduled for today, the speech of Fed Yellen, which is expected to hear the signals for further actions of the Central Bank. Currently, futures on interest rates Fed indicate that the probability of a rate hike of 24% in June, against 4% last Monday. Meanwhile, the chances increase rate estimated at 55% in July.

The cost of the June gold futures on the COMEX fell to $ 1210.7 per ounce.